Africa Oil Week: Stand 45
Infield Systems launches its new online Africa report; highlighting the
major trends and developments taking place across the region’s offshore sector.
Expected to hold a 20% share of global offshore Capex demand over the 2015-2019
timeframe, Africa, driven by deepwater development offshore Angola, Nigeria and
Ghana, remains a pivotal market for the world’s leading IOCs, with operators
including Total, Eni, BP, ExxonMobil and Independent Tullow all continuing to
invest a significant proportion of their E&P budgets within the region.
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Infield Systems forecasts the Africa region to undergo a CAGR
of 14.5% in offshore Capex demand during the 2015-2019 timeframe. West Africa drives
this demand and is expected to hold an 80% share of African offshore Capex over
the five year period, although this represents a decrease from the previous
period to 2014 (91%), predominantly as a result of the growth projected for the
South and East African sub-region, driven by Mozambique. The North African
sub-region is also anticipated to see considerable Capex growth compared to the
historical period, primarily as a result of planned capital-intensive projects
such as the possible gas export pipeline from Israel’s Leviathan field to
Egypt.
Within West Africa, demand is
anticipated to remain driven by Angola with key projects including: Total’s
Kaombo 1 and 2 and the possible Chissonga development operated by Maersk. Altogether, Infield Systems expects a total
of 111 fields offshore Angola to require Capex spend, whilst average water
depths of developments are forecast to stand at around 900 metres. Nigeria is
expected to remain the second highest demand driver with forecast Capex
expected to increase by 107% compared to the previous five years; predominantly
as a result of the giant Egina project, which is expected to form 40% of
Nigeria’s offshore Capex over the period. Ghana is expected to comprise 8% of
Africa’s offshore Capex over the 2015-2019 timeframe, with the largest demand expected
to be required by the subsea sector; driven by projects such as Tweneboa (TEN)
and Mahogany East.
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Within the South and East African
sub-region Infield Systems expects the consortium of Eni CNPC to lead development
spend, with activities solely focused upon projects offshore Mozambique, in
particular the Coral and Mamba North and South prospects. Anadarko is also
expected to direct investment towards developments offshore Mozambique,
focusing on prospects within the Prosperidade area. Investment offshore
Tanzania could also commence towards the end of the timeframe, whilst offshore
Namibia, the Kudu field, operated by NOC Namcor, remains on the table for
development before the end of the decade although further delays may also be likely here.